UK Authorities Approve Merger of Vodafone and Three--New Company Promises ¥2 Trillion Investment in 5G Infrastructure
On December 5, the UK Competition and Markets Authority (CMA) conditionally approved a proposed 15 billion pound merger between Vodafone, the third largest telecommunications market in the UK, and Three UK, the fourth largest. The merger is expected to be completed in the first half of 2025 and will create the new largest mobile operator in the UK...
2024/12/27
Posted on 12/27/2024
On December 5, the UK Competition and Markets Authority (CMA) conditionally approved the proposed 15 billion pound (approximately 2.8 trillion yen) merger of Vodafone, the third largest telecommunications market in the UK, and Three UK, the fourth largest. The merger is expected to be completed in the first half of 2025 and is expected to create the new largest mobile telecommunications operator in the UK.
Conditions of approval by the CMA include major investments in state-of-the-art 5G infrastructure over the next eight years, the sale of some spectrum to competitor Virgin Media O2, a three-year cap on certain mobile rate and data plans, and pre-set contract terms for MVNOs.
Vodafone and Three UK have already committed to investing 11 billion pounds to build Europe's most advanced 5G network. The new network will cover 99% of the country's population and is expected to significantly improve quality and reliability through the adoption of AI technology and other technologies.
Margherita Della Valle, CEO of Vodafone Group, said, "Today's decision creates a new force in the UK telecommunications market, enabling the investment needed to build the network infrastructure that the UK deserves," adding, "The increased investment will put the UK at the forefront of European tele The increased investment will put the UK at the forefront of telecommunications in Europe.
Reuters, which covered the topic, noted that the CMA's inclination to approve the merger was "the first sign that it has taken note of the current administration's desire to prioritize economic growth and infrastructure investment over consumer price reductions," and accepted the companies' argument that "a better network will promote competition and have a positive impact on economic growth. The report also points out that the companies have accepted the argument that "a better network will promote competition and have a positive impact on economic growth.
